PGN 3Q net income rises 88%

PGN 3Q net income rises 88%

PT Perusahaan Gas Negara (PGN), Indonesia's state-controlled gas distributor, had net income for the third quarter ended Sept. 30 rise 88 percent as it benefited from higher sales and probably from a stronger rupiah.

Net income for the quarter rose to Rp 187.7 billion (US$21 million) from Rp 100 billion, as sales rose 25 percent to Rp 1.17 trillion. The profit was calculated by deducting first-half earnings from nine-month figures.

For the nine months to the end of September, Perusahaan Gas' net income fell 49 percent on foreign exchange losses and higher debt costs.

The rupiah fell 8 percent in the nine-month period from a year earlier, making it more expensive for companies to repay debt. A 2.7 percent gain in the currency in the July-Sept period may have helped the company improve its third-quarter profit.

For the first nine months, the Jakarta-based company earned Rp 263.9 billion, from Rp 522.2 billion a year earlier, it said in a statement to the stock exchange.

It didn't provide per-share data. The profit report was not audited.

In the nine-month period, it reported a foreign exchange loss of Rp 227.9 billion, from a gain of Rp 78.5 billion a year earlier.

Its interest expenses more than tripled to Rp 295.7 billion from Rp 84.3 billion a year earlier.

Perusahaan Gas had long-term debt of Rp 6.09 trillion at the end of September, compared with Rp 3.87 trillion a year earlier.

Its profit was also hurt in the nine months as costs of distribution and transport soared 80 percent to Rp 535.8 billion, it said in its statement.

Jan.-Sept. revenue from sales of gas and transmission rose 24 percent to Rp 3.27 trillion from Rp 2.64 trillion a year earlier, the statement said. -- Bloomberg